The Property Council of Australia welcomes the passage of legislation that sets up the First Home Loan Deposit Scheme for prospective first homeowners and ensures a stronger supply of housing data for informed decision making.
Ken Morrison, Chief Executive of the Property Council of Australia, said the new first home loan scheme would not only provide pathways to home ownership for more Australians, but provide timely stimulus for housing and construction supply.
“The current ‘deposit gap’ has been a big hurdle for many first home buyers and adds to the time they need to spend saving to meet the lenders deposit requirements, or purchase expensive mortgage insurance,” Mr Morrison said.
“According to recent data from CoreLogic, the average Australian homebuyer needs just under nine years to save for the 20 per cent deposit requirement – and longer in markets such as Melbourne and Sydney.”
“The First Home Loan Deposit Scheme reduces these barriers to entry for up to 10,000 first homebuyers every year, and boosts support for construction sector jobs, helping to drive economic growth at a critical time.
“We welcome a commitment to review the scheme after 12 months to ensure it will be responsive to demand.”
The Property Council also warmly welcomes the provision of extra housing data that will stem from the National Housing Finance and Investment Corporation’s (NHFIC) new research function.
“Australia has suffered from a lack of timely and reliable data on housing over past years,” Mr Morrison said.
“The NHFIC’s new research function will provide additional information on demand, supply and affordability that will be immensely helpful in shaping future housing policy.”